I think that the SE 2020 fills a need that Apple must remain active in. The person that buys the SE, isn't concerned about specs and cameras and all the stuff we tech nerds spend our days thinking about.
They want to be part of Apple and this fills their needs perfectly. Apple will probably do exactly like you explained and it will be a huge hit.
I am seriously thinking about buying the SE 2020 and rocking it for a month to see how it handles my daily life compared to my $1000 flagship.